GIVEN the economic gloom and the good times not expected to return in the immediate future, is it a good or a bad time to study for an MBA?

The trite answer is that it is always a good time to take an MBA. The reality is more complicated. Much depends on how long and how deep the economic trough is likely to be. A full-blown recession in America and possibly in the UK must be bad news for job markets.

“It is important for managers to think strategically about when best to take an MBA,” says Jonathan Slack, chief executive of the Association of Business Schools, the UK trade body. “In times of economic downturn, it is particularly important for people to supplement their CVs with an MBA or a more specialised masters degree in what will become a more competitive managerial market.”

How the current downturn affects the aspiring MBA graduate is likely to depend on where they are in the pipe-line when recovery starts. Those who graduate this summer are likely to find fewer jobs on offer. But so far, the underlying demand for MBA graduates remains robust. Henley Management College reports that all its full-time MBA students who graduated in 2006 have secured jobs except for two who are continuing with their studies.

“Financial services, marketing and consulting remain strong, so no change by sector,” says Neil Gibbons, executive director of open enrolment programmes, at Henley. “But we are noticing that participants have secured more senior roles than their predecessors.”

Henley says it is too early to know how the class of 2007 is faring. However, Peter Fennah, director of the career development service, at Cran-field School of Management, is up-beat. “Four months after graduating, 84 per cent of our 2007 MBA cohort are in employment,” he says.

The MBA continues to provide a good platform for those who wish to make big changes to their careers. UK schools report that jobs in financial services are down, as one might expect, with more people going into industry positions. Previous economic downturns have brought a surge in MBA applications, as people seek refuge on business school campuses. Some UK schools already report a rise in both applicant numbers and quality.

If the recession deepens, too, some of those made redundant may choose to invest their pay-offs in upgrading their qualifications. For them, taking an MBA during a slowdown may be a timely career pit stop. “ A downturn is a good time to be investing in developing new skills and knowledge to be well prepared to meet the opportunities presented once the upturn comes,” says Anne Wood-head, director of the executive MBA at Durham Business School.

She says: “A new economic environment presents new challenges. The right MBA programme will bring you up to speed with current business developments, widen your skill set and prepare you even for a change of career direction.”

The longer the downturn lasts, the riskier taking an MBA becomes – the worry being that there are more MBA graduates with fewer jobs to go round. But, if, as some experts claim, the impact of globalisation is speeding up the business cycle, so the current gloom may pass quickly, making now a good time to take an MBA. Like all investments, it comes down to how good your timing is. And that is a matter of both luck and judgment.

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